Fertile Environment for Gold
Why is gold so difficult to fall now? In fact, if we look at history using technical analysis, this metal has experienced a significant decline several times after setting a new record. However, if we look at the recent movements, gold has almost never fallen more than 100 points after setting a new record.
If we compare gold to a plant, then now with so much anxiety and uncertainty in geopolitics and global trade, it has created a fertile field for gold to grow. Market players and large investors who are not sure about the current situation still believe that gold is the best traditional hedge asset.
Chinese Premier Li Qiang said Asia's largest economy is still ready to face tariff shocks and Australian Treasurer Jim Chalmers warned of the "seismic" impact of US policy on the global economy.
Meanwhile, elsewhere, the Pentagon is sending another aircraft carrier group to the Middle East, a US official said, as tensions rise in the region following the resumption of Israeli attacks on Hamas in the Gaza Strip.
Maybe in the near future we will see gold experience a technical correction because it has been in the overbought area for too long, but in the long term this yellow metal is still predicted to continue its increase. Remember, when strong fundamentals are unable to push it up, it can still be a buffer so that it does not fall too sharply.
Source : (mrv@Newsmaker)
